Realty firm Suraksha group on Sunday strongly objected to the creditors’ panel of bankrupt-Jaypee Infratech to consider fresh submissions by NBCC and warned of appropriate legal action against lenders as well as the interim resolution professional if voting on the group’s offer fails to materialise. The Suraksha group has conveyed its objections in a letter addressed to Interim Resolution Professional (IRP) Anuj Jain and the committee of creditors (CoC).
The latest development comes hours after the IRP called for a meeting of the CoC in the morning of May 24 to discuss state-owned NBCC’s addendum to its resolution plan, which was rejected by the panel on May 20. The bid of the Suraksha group was also approved for voting on that day.
The morning meeting of the CoC will be from 10 am to noon on May 24 (Monday), just two hours before the scheduled voting process on the Suraksha Group’s offer will commence. The voting process will be on from noon on May 24 till 5 pm on May 27.
On May 20, the CoC approved Suraksha group’s bid and rejected NBCC’s offer, saying it was not compliant with certain provisions of the Insolvency and Bankruptcy Code (IBC) and a Supreme Court decision in March this year.
However, a meeting of the CoC has been scheduled for Monday morning to discuss NBCC’s addendum to its bid, which was submitted late on May 18.
Peeved over the proposed CoC meeting, the Suraksha group has written a strongly-worded letter to Anuj Jain and bankers, seeking fairness and transparency in the insolvency process.
“We wish to put on record strong objections to such actions to ratify and discuss the resolution plan of the other resolution applicant at this late stage…,” it said in the letter.
Listing out the reasons for its strong objection, the Suraksha group said it had submitted the resolution plan on May 18 within the stipulated timeline of 4 pm.
NBCC’s plan was submitted not only after stipulated timelines but also after opening and circulation of the Suraksha group’s plan to the CoC members, it added.
In this regard, the company said that “in the interest of fairness and transparency of the process, the CoC should not have even considered the plan submitted by NBCC on May 18, 2021”.
If the resolution plan itself ought not to have been admitted, it is obvious that any addendum to such resolution plan cannot be admitted, Suraksha group pointed out.
“Any opportunity to the other resolution applicant by way of considering its plan/ revision/ addendum thereto, after decision of the CoC to put up our resolution plan for voting, shall make mockery of entire process and shall be gross injustice to us whose plan was submitted within stipulated time, opened and circulated also amongst the COC members,” it noted.
Further, the Surkasha group said it is beyond powers of the CoC and the IRP to consider such added um without taking its approval.
“… it is expected that the IRP and CoC members will adhere to the provisions of the Code and regulations made thereunder as well as ensure that the entire process is conducted in line with the established principles of transparency and fairness,” the letter said.
In case of any further delay in the process and/ or deviation from the decision already taken by CoC in its meeting dated May 20, Suraksha group said it reserves the right to take “appropriate recourse under the applicable laws against the IRP and/or the members of CoC…”
The recourse could include complaining to concerned governing authorities/ agencies for investigation of irregularities in the process, the letter said.
Citing reports that NBCC plan has been declared non-compliant with the IBC and the Supreme Court order, the Suraksha group said any violation of such provisions may lead to litigation which would adversely affect the CIRP (Corporate Insolvency Resolution Process) as well as the interest of the stakeholders especially more than 20,000 homebuyers.
According to the sources, the Suraksha group is unhappy with this decision to call the CoC meeting and it could consider withdrawing from the resolution process if the CoC permits voting to NBCC’s bid.
Meanwhile, Jaypee Infratech’s IRP informed stock exchanges that the CoC meeting will be held on Monday.
According to the sources, the CoC meeting has been scheduled from 10 am till noon.
The sources said ratification of NBCC’s addendum dated May 22 to their resolution plan, discussion on the addendum to resolution plan and next steps in the CIRP (Corporate Insolvency Resolution Process) are part of the agenda for the meeting.
On May 22, NBCC wrote to the IRP questioning his jurisdiction and also sent a 14-page addendum to further clarify queries raised by the lenders.
Following NBCC’s letter, as many as five lenders — SBI, IIFCL, IDBI, UBI and LIC — requested the IRP to convene the meeting, the sources said.
A section of homebuyers wrote to the IRP stating that NBCC’s addendum should not be considered if it was still non-compliant with the IBC and the Supreme Court’s judgment.
In a regulatory filing on May 21, the IRP informed that the CoC in its meeting held on May 20 decided to put to vote the final resolution plan of Suraksha group.
This is the fourth round of the bidding process in the matter of JIL bankruptcy case. Following disputes between Suraksha group and NBCC, the matter reached the Supreme Court, which first in November 2019, ordered that revised bids for JIL should be invited from the two companies only. The same was reiterated by the apex court in March this year also.
Source: Economic Times